Performance-Based Acquisition

Course Synopsis

Service contracts have been widely criticized for being plagued by cost overruns, delays and other problems. Performance-based contracting is increasingly being invoked as a means of overcoming these problems and ensuring value for money. Does the approach live up to its promise? It can – if it is properly employed.

Performance-based acquisitions (PBAs) are designed to allow contractors to propose and implement innovative ways to achieve contract objectives and provide the government with effective tools to objectively assess and enforce contractor performance. The proper use of surveillance plans, incentives and other PBA tools can lead to enhanced contractor performance, resulting in cost savings to the agency and improvements in customer satisfaction. This course demonstrates how to lay a solid foundation for any service contract by establishing a sound performance-based approach from the start.

The course begins by focusing on team development of the work breakdown structure and task identifications; conversion of cost-plus requirements to fixed-price; use of incentives, deductions and penalties in connection with performance goals; and application of specific cost and performance measurement techniques, quality assurance surveillance plans and quality-related evaluation factors. You’ll learn to incorporate proven best practices in performance-based service contracting in a hands-on environment that emphasizes real-life, in-the-workplace skills.

The course then outlines the next steps following the award of a performance-based contract. You will learn to measure and document contractor performance and reach successful contract completion by applying the appropriate incentives.

The course exercises are derived from real-life, performance-based acquisition scenarios that take participants beyond a mere review of the regulatory and process aspects of obtaining effective contractor performance. You will leave the course with a thorough, updated knowledge of PBA tools, and be equipped to use these tools to successfully monitor and assess performance, receive and accept services and close contracts.

Learn How To

• Write performance work statements that clearly describe your requirements
• Establish measurable, realistic standards of performance
• Use incentives and penalties to your advantage
• Evaluate performance results against performance standards
• Use the key tools of a performance based service contract to manage effective contract performance
• Facilitate a partnering relationship between government contract monitors and the contractor
• Identify practical methods for inspecting, measuring performance and applying incentives
• Assess contractor performance and successfully close a performance based contract

Course Topics

1. PBA Overview
   1. Policy requirements
   2. Review of PBA steps
   3. Definition of key PBA terms
   4. Specifications and work statements
   5. Procurement planning
   6. Key components of a performance based contract
2. Team Roles and Responsibilities
   1. Building a contract administration team
   2. Roles of the CO, COTR and others in the PBA process
3. Market Research and Analysis
   1. Market research techniques
   2. Informational requests for proposal
   3. Job analysis, work analysis and the work breakdown structure
   4. Performance analysis
   5. Develop performance standards
   6. Determine acceptable quality levels
   7. Identify incentives
   8. Create a performance requirements summary
   9. Evaluation analysis
   10. Establish performance measurements
4. Incentives and Deductions/Penalties
   1. Fixed-price and cost-type contract implications
   2. Goals vs. performance indicators
   3. Application to objective and subjective measurement standards 
5. Writing the Performance-Based Work Statement (PWS)
   1. Do’s and don’ts
   2. Application of performance-based goals
   3. Typical problems with PWSs
   4. Steps in preparation
   5. Legal writing requirements
   6. Clear, concise wording and precise terms
   7. Measurement of outputs
6. The Quality Assurance Plan
   1. Elements
   2. Examples
   3. Application
7. Communicating with the Contractor
   1. Partnering relationship with the contractor
   2. Communications plan for monitoring process
   3. Post-award orientation
   4. Ethics in dealing with the contractor
8. Monitoring Performance
   1. Using the Quality Assurance Surveillance Plan (QASP)
   2. Inspection techniques
   3. Application of incentives
   4. Interpreting performance data and making contracting management decisions
   5. Performance evaluation
   6. Problem resolution
9. Change Management
   1. Change management planning
   2. Recognizing the necessity and potential benefit of change